SaaS Market Faces Decline Amid AI Concerns
The iShares Software ETF (IGV) has experienced a nearly 13% decline over the past year, compared to an 8% increase in the S&P 500 Index. This drop is attributed to fears surrounding potential disruptions from artificial intelligence (AI), particularly following the release of Anthropic’s “Claude Cowork” agentic AI product in early 2026, which heavily impacted software valuations.
Performance of Major Software Companies
Despite market concerns, significant earnings reports indicate resilience among quality software companies. For example, Figma (FIG) surpassed Zacks Consensus Estimates by 66%, while ServiceNow (NOW) has been projected to maintain steady earnings growth despite a recent share decline. Furthermore, Salesforce (CRM) announced a plan to buy back approximately 250 million shares, valued at around $50 billion, signaling CEO Marc Benioff’s confidence amidst shrinking valuations.
Microsoft’s Resilience
Shares of Microsoft (MSFT) found support at the 200-week moving average, a key technical level that has remained stable since the 2008 Global Financial Crisis, suggesting potential long-term stability for the company despite overall market volatility.
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